Do employers have to pay overtime pay to an employee who works on a holiday?

Employers are not legally required to pay overtime pay for hours worked on a holiday unless specified by a contract or company policy. In the absence of any agreement providing for holiday pay, the Fair Labor Standards Act (FLSA) does not mandate additional compensation for working on holidays. Thus, if overtime compensation is being considered, it typically applies to hours worked over 40 in a week rather than the specific calendar day itself.

Therefore, if the employee has not exceeded the standard threshold of hours worked in the week and there is no contractual stipulation or company policy stating otherwise, the employer is not compelled to provide additional pay for those hours worked on a holiday. This is an important distinction as holiday pay practices can vary significantly across different employers and industries.